-LRB- CNN -RRB- -- Earlier this month , an AeroMexico plane made an important flight from Mexico City to Madrid . The flight was n't notable for who was inside the cabin , but for what was inside the fuel tank : it was the world 's first transatlantic commercial flight using biofuel .

The engines on that flight were powered by a fuel mixture that was 30 % biofuel from the jatropha plant , and the trip followed a pair of Mexican domestic commercial flights by Interjet that used the same formula .

Mexico is known for its oil production , but it could be its less obvious flats of arid and marginal land that will be the future of Mexico 's energy resources . The country has quietly positioned itself to become a potential leader in biofuel production as scientists develop a second generation of fuels derived from sources that do n't compete for arable land or with food .

Jatropha-based biofuels are being increasingly used in Mexico , and agave -- the plant from which tequila is made -- is being studied as a new source for ethanol . But some observers warn that Mexico 's cumbersome land laws make it too hard to purchase the land needed for cultivation at competitive prices .

Some biofuels , such as ethanol derived from corn and sugar , can indirectly raise the prices of staple foods in many places , along with raising ethical issues , said Gilberto Lopez Meyer , director of Airports and Auxiliary Services -LRB- ASA -RRB- , the Mexican government agency that oversaw the biofuel flights .

So in 2007 , Mexico , along with 14 other member countries of the International Civil Aviation Organization , committed to developing new strategies for second-generation biofuels that would not affect food production .

`` We returned to Mexico with a mission , '' Lopez told CNN .

Lopez 's agency teamed up with the state of Chiapas , where Gov. Juan Sabines had already made a name for himself pushing his state toward alternative fuels . Chiapas began cultivating jatropha , whose seeds contain oil that can be extracted and converted into biofuel . The state already uses a jatropha biofuel mix on its buses and trucks , and President Felipe Calderon was on hand in November of last year to inaugurate a biodiesal plant there .

ASA partnered with American company UOP , which refined the Chiapas jatropha into jet fuel .

When the standards for biofuel use in commercial flights was approved July 1 , Mexico was ready to make the domestic Interjet and international AeroMexico flights a possibility .

The goal of ASA , which provides almost 100 % of the jet fuel in Mexico , is to commercialize and distribute biofuels , Lopez said .

`` We 've been working on this project as part of a global effort to combat climate change , '' he said .

By 2015 , the goal is to have 1 % of all jet fuel in Mexico be biofuel , and by 2020 , 15 % , he said .

`` This is a huge goal , '' Lopez said . `` One percent does n't sound like a lot , but it equals more than 40 million liters -LRB- 10.6 million gallons -RRB- . ''

Mexico has several things in its favor to become a leader in biofuels , he said . It has plenty of land not being used for food , it has a high demand for energy , and it is located next door to the energy-hungry United States .

`` Mexico has made the very important first step to be in a very priviledged place , '' Lopez said .

Halfway across the world , researchers at Oxford recently published a study extolling the benefits that ethanol derived from agave .

Agave can grow in arid land , and produces less than half of the carbon dioxide emissions produced by corn-based ethanol , Oliver Inderwildi , one of the study 's authors , told CNN .

Sugar-based ethanol produces even less emissions , but it needs arable land for cultivation .

`` We need every space we can get , every arable land , for food , '' Inderwildi said . `` We think agave may be one part of the solution . ''

For their study , the researchers did a life-cycle analysis for the production of ethanol based on a hypothetical plant in Jalisco , Mexico , where 90 % of tequila is produced .

Potentially , agave plantations could boost local economies and create jobs , Inderwildi said .

Mexico , the native home of agave plants , stands to benefit if such an ethanol industry takes off . Food prices would be spared , but would drinkers have to pay more for their margaritas and tequila shots ?

The tequila business is very small compared to the fuel business , and is also more expensive than fuel ethanol , so Inderwildi predicts that alcohol prices would remain stable .

And unlike tequila , which requires the harvesting of the agave stem only , ethanol production would also require harvesting the leaves of the plant .

`` Our study backs up that this is a good idea from an environmental perspective , '' he said .

The catch , for now , is that neither jatropha or agave biofuel production is cost-effective . But technological advances and oil prices make such alternatives more desirable .

When that tipping point comes , Mexico will be ready , the experts said .

But James Row , CEO of Houston-based Producers Energy and part owner of a Mexican-based biodiesel company , told CNN that Mexico is still far from being an ideal place to produce biofuels .

`` Mexico is absolutely a perfect country for biodiesel , especially if it can be domestically grown , '' he said , but the country 's ejido system -- collectively-held land in rural areas -- creates hurdles for private investment . The result is difficulty in finding continuous large areas of rural land that can be negotiated for use for cultivation , or high prices that make it cost prohibitive .

Without land reform , issues with land availability will continue , and Mexico will fall a decade or more behind other countries in the biofuels sector , Row said .

The demand is there , the land is there , but there is no way to get it , he said .

`` Now is the time for Mexico to get its act together for biofuels , '' he said .

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Mexico has quietly positioned itself as a potential biofuels leader

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It oversaw the first transatlantic commercial flight using biofuel

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The agave plant also has potential for the country

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Without land reform , private investment in sector is tough